Thanks to the ever-increasing rise in the importance of data and the internet, Information Technology (IT) plays a critical role in today’s business world. Therefore, it’s imperative for every business that wants to achieve success and stability must ensure that its IT resources are optimized.

Digital Transformation is the adoption of digital technology to transform services or businesses, through replacing non-digital or manual processes with digital processes or replacing older digital technology with newer digital technology. In other words, digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how it operates and deliver value to customers. Large companies are using digitalization as an opportunity to fix many of the functional areas and move them into the digital age which is called Digital Business Capability. A digital business capability is what a business does and can do in the digital or physical realm using underlying value streams and processes, and realized by systems/applications. So, a digital business capability is an elemental entity or a Lego block in the digital universe. A company may need a set of such digital capabilities to accomplish its digital objectives and reach its manifest digital destiny which is called Digital Transformation.
Some of these capabilities are:

  • Marketing Transformation
  • CRM Transformation
  • Accounting and Finance Transformation
  • HR Transformation
  • Business Intelligence and Data Analytics Transformation
  • Supply Chain Transformation

Rarely, companies have an entire market all to themselves. Indeed, most enterprises are facing ever-increasing challenges just trying to hold onto their market share. In fact, in most cases, companies are dealing with more and more competition every day. You simply can’t afford to sit still and hope for the best. If you take this approach, you’ll soon find that your competitors are taking away all your business. Therefore, you need to know where you are now and to where want to go. In this way we can figure out the path and find out how to traverse.

Across industries, organizations are accelerating digital business transformation for long-term growth and profitability. From Gartner’s perspective, “the transformation journey is taking large enterprises especially at least twice as long and costing twice as much as they originally anticipated.” In large part this is due to cultural readiness. “53% of the organizations surveyed by Gartner, remain untested in the face of digital challenge and their digital transformation readiness therefore uncertain.”

Digital transformation is the megatrend driving billions in investment across the corporate world to reinvent the way they do business. Digital transformation is a customer-centric reimagination of the future of an enterprise and subsequently rethinking the business model. It is Reshaping the product/service portfolio, restructuring the processes, re-platforming technologies, reskilling the workforce, and instilling a new culture to get to the end goal.

Let’s unpack as to what all that means:

  • Digital transformation is a business transformation first, encompassing operating model, people, culture, and process.
  • Digital transformation is a foundational and an invasive endeavor, and it is not just putting some lipstick on a pig.
  • Real digital transformation involves answering strategic questions such as, “What will my business look like at the end of this journey,” “What is our value-add and justification for existence,” “What do we make, sell, and how to make money.” These are existential questions and not always black and white.  For example, what a company makes/creates and how it makes its money may be very different in the digital age.
  • Digital transformation is more than technology transformation. Technology is just an enabler.
  • Customer-centric culture, strong leadership, and ability to initiate and manage change are critical success factors to digitalization.

Of course, not every company needs to do all the things and that too all of them at once. Ultimate it may require a massive investment, but planning, prioritization, sequencing, and phasing are as essential to get quick wins, and then accelerate momentum.

It is essential to articulate the benefits of digital business transformation and of course deliver those benefits.  Here are the ten benefits of digitalization in the enterprise context:

  1. Better customer experience: As one of the core focus areas of digital transformation, the outcome is often a customer experience lightyear beyond what was present. Of course, the degree to how much improvement is possible depends on the state of the enterprise and the way the capability came together.
  2. Reduced cost of operations: Considering the margin pressures and lack of pricing power, lowering the cost of services and decreasing the friction is the machine is a positive contributor.
  3. Better compliance: When done right, digitalization helps in making risk and compliance management as an integral part of operations, not a superimposed structure.
  4. Effective Risk Management: Managing enterprise risk at various levels and controlling the vectors is often the goals and the outcomes of a well-implemented digitalization program.
  5. More profound Customer Insights: Customer analytics are another facet of the digital transformation that yields tremendous rewards. Whether it is customer segmentation for right customers, customer analytics for churn prediction, or calculating the propensity to buy, there are many ways customer analytics have changed the customer acquisition, conversion, retention, and wallet expansion game.
  6. Data-driven Decision Making: Dashboards, the real-time pulse of the company, predictive analytics have contributed to better strategy formulation and optimal decision making. The data-driven decision-making is yet another landmark benefit of a digital enterprise.
  7. Elimination of reduction of Silos: Traditionally, large companies were a collection of fiefdoms. No longer. Today, thanks to digital transformation a new company-wide process orchestration and capability development are a reality.
  8. New Business Models, New Products, and Better Opportunities: From monetizing data to reaching across the global frontiers, from mass customization of products to achieving pinpoint personalization, digital makes a whole slew of things possible and feasible.
  9. Employee empowerment: A digital culture with a customer-centric and employee-centric focus and ethos helps employees feel empowered and go beyond the traditionally defined boundaries of role. Virtualization allows for anywhere work access. BYOD (Bring your own devices) make it easy to get work done without too many tools. New generation teamwork applications boost morale and productivity.
  10. Collaboration: Digital technologies and digital thinking foster cooperation internally, and collaboration externally with the ecosystem partners.

Leading, managing and ensuring risk control and compliance with rules and requirements are three tools that help the organization achieve its goals. Leadership is a combination of institutionalized processes implemented by senior managers that represent the structure of the organization and how to manage and direct in order to achieve goals. Risk management is the forecasting and management of risks that may make it difficult for an organization to achieve its goals. Compliance refers to the extent to which the organization relates to policies, procedures, rules and regulations. Governance and Management both in business and IT, can help you to achieve these goals and Digital Transformation is the solution.

If we have learned anything from 2020, it’s that the future is unpredictable and it’s up to IT leaders to decide whether to view unexpected technological advancements as disruptions or opportunities. While you may not be able to predict the future, what you can do is better prepare your organization to thrive through disruptions with the help of digital transformation.

If you are about to implement a Digital Transformation project, request us a technical and financial proposal:

For more information about our model, read the following file: